Floods disrupt Nepal-China trade route, raising supply concerns

Flash floods in Nepal’s Bhotekoshi River have severely disrupted trade with China, damaging border infrastructure and stranding hundreds of containers. Traders fear festival-season shortages and higher prices as cargo is diverted through Korala, increasing transport costs and delivery times

Kathmandu: The devastating flash floods in Nepal’s Bhotekoshi River have severely disrupted trade with China, raising concerns about the timely supply and prices of Chinese goods ahead of the festival season, a media report said on Wednesday.

The flash floods have damaged the border infrastructure and connecting roads, disrupting the movement of cargo trucks carrying goods imported from China, the Rising Nepal newspaper reported.

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It has forced traders to look for alternative routes at a time when demand for consumer goods is expected to surge ahead of the festivals of Dashain, Tihar and Chhath.

Importing goods from China to meet the immediate demand has become a challenge, Ram Hari Karki, president of the Nepal Trans-Himalayan Border Commerce Association, said. He said the disruption could affect the supply of festival-related goods and increase transportation costs.

“More than 500 to 600 Chinese containers carrying goods for Teej, Dashain, Tihar and Chhath were moving from China towards Kerung. Many of these cargoes have been stranded after the Rasuwagadhi border was damaged,” he said.

Meanwhile, more than 200 Nepali containers were swept away by the floods. “The floods swept away 200 containers, while businessmen have suffered losses of at least NPR 2 billion,” he said.

Rasuwagadhi is one of Nepal’s major trading points with China and handles a significant volume of Chinese imports.

The situation has become more challenging for traders as the Tatopani border, another important Nepal-China trade route, is also not operating normally. With both major northern routes disrupted, traders have been compelled to divert cargo through the Korala border in Mustang, said Karki.

According to Karki, around 176 cargo trucks have already been diverted towards Korala.

However, he said the route could not serve as a practical year-round alternative to Rasuwagadhi because of its difficult terrain, high altitude and longer transportation time.

“Using the Korala border is our compulsion, not an alternative,” Karki said.

The diversion of cargo through Korala is expected to increase both transportation time and import costs.

Karki said it could take at least 10 to 12 days to transport cargo from China to Nepal and back through the Korala route, compared with the relatively shorter routes previously used by traders.

According to traders, the transportation cost of a cargo vehicle travelling from the Korala border to Kathmandu is currently around NPR 450,000 to NPR 500,000. This represents an increase of around 10 to 15 per cent in transportation costs, Karki said.

Chinese goods account for a substantial share of merchandise sold in Nepal during the festival season. Traders import garments, footwear, electronics, electrical goods, household items, decorations, toys and other consumer items from China.

Traders are now concerned that goods already ordered for the festival season may not reach the Nepali market on time because of the longer route and disrupted border infrastructure, said businessman Narayan Pandit.

“Traders are worried about bringing goods already ordered from China on time for the upcoming festivals because of the longer route,” he said.

As of Wednesday, more than 1,350 people have died due to the flash floods while search and rescue operations for more than 5,000 missing people continue.